Factory output hits 3 months high

“The PMI results for India painted a vibrant picture of the nation’s manufacturing landscape in August,” said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.

The August manufacturing PMI number has come a day after the release of April-June GDP data, which showed the Indian economy grew at a four-quarter high of 7.8 per cent, broadly in line with expectations.

However, the manufacturing sector grew by a mere 4.7 per cent, pulling down overall growth.

Kaushik Dani, Fund Manager-PMS, Abans Investment Managers, said, “we have a strong beginning to the month of September with high frequency indicators like the manufacturing PMI showing robust expansion. Even the first quarter GDP numbers for this fiscal, though in line, at 7.8% is at a four-quarter high.

Thus, India continues to remain the fastest growing among trillion-dollar economies.” Markets, especially large cap indices which have taken a breather over the last few weeks, should witness a fresh up move on account of these positive data points, Dani said.

In the US, economic activity in the manufacturing sector contracted in August for the 10th consecutive month following a 28-month period of growth.